I have clients that purchase small tax lien properties. These properties tend to be cheap, and easy. These investors are looking to make money on the interest rate rather than the property. Even if this is the case, you still need to do your due diligence.
Even though my attorneys’ fees are very reasonable (far more reasonable than any competitors….), these fees are still an expense in your tax lien purchase. Reasonably often, on these smaller properties the owners do not want to pay the tax lien amount because the property is not worth very much and you may end up going through the foreclosure process.
I have had a couple of cases where my fees are more than the cost of the property. This is not a place you want to be.
It always pays to do your due diligence on the property, even if you are just investing for the interest rate returns.